Tsipras continues to resist humiliation of Greece over debt

Greek Prime Minister Alexis Tsipras considers EU and IMF proposed reforms not realistic enough

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

Greek Prime Minister Alexis Tsipras continued to advise international creditors against specifying overly harsh economic reforms during a recent speech in the European Parliament in Brussels.

Tsipras criticised the European Commission plans released this week by the Commission’s President Jean-Claude Juncker, saying the EU and IMF should not offer “bad negotiating tricks” as proposals.

Tsipras said he wanted negotiators to offer “realistic” proposals during this “critical” time.

“The proposals submitted by lenders are unrealistic. The Greek government cannot consent to absurd proposals,” he said.

“I would like to believe that this proposal was an unfortunate moment for Europe, or at least a bad negotiating trick, and will very soon be withdrawn by the same people who thought it up.”

Tsipras added that the European Commission’s plan is not long-term, saying “we don’t just need an agreement, we need a definitive solution, both for Greece and for Europe, that will finally end the talk of a Greek exit from the eurozone.”

“The fiscal strangulation of a country is a moral issue that conflicts with Europe’s founding principles – which raises well-founded questions over Europe’s future,” he added.

He said that the deal needs to stand "for a solution and not to... humiliate a whole people."

A surprise move was taken by Greece on Friday after it announced obligatory repayments to the International Monetary Fund will be delayed. Upon the decision, Greek Economy Minister George Stathakis said the recent proposal of the cash-for-reform deal was unacceptable, however Greece is still willing to compromise on a deal.

Greece is said to have accepted a previous offer from the IMF to bundle four payments due in June into a single 1.6 billion euro lump sum due at the end of the month.

As the Greek saga continues, a reform deal was put on the table by its international creditors, it was however rejected by the debt burdened country. Earlier in the day a Greek deputy minister also noted that a snap election could be possible if demands on terms are not eased.

Causing a further blur in the negotiation talks with its international lenders, Greece postponed a loan repayment of 300 million euros to the IMF. Although the move was not received well, Athens managed to save itself from a possible default.

The country has a debt of €320 billion, which is the equivalent to 175 percent of its GDP and is largely the result of unpaid bailout loans.

TRTWorld and agencies